Tuesday, April 12, 2005
Volkswagen Passat
VOLKSWAGEN is planning to put a sub-£15,000 price sticker on the new Passat range it will launch in summer.
In entry-level trim, the German company’s D-sector contender will be pitched to cost just 1.3% more than models from volume manufacturers, Fleet NewsNet can reveal.
Finishing touches are now being put on the marketing strategy that will allow British customers to pay substantially less for the lead-in 1.6-litre petrol S version than the £15,600 being asked for the car in domestic market showrooms. Car rental uk.
And executives at Volkswagen UK are aiming to step up the pressure on Ford, Vauxhall and Peugeot by pricing the version of the Passat they expect to be most popular – the 2.0-litre TDI SE 140 – only 1% higher than competitor models when specification levels are taken into account.
Volkswagen UK director Paul Willis said: ‘We are still working on the details, but I can tell you that our SE cars will include six-speed transmission, electronic handbrake, cruise control and 16-inch alloy wheels. This is specification packaging that puts us way ahead of our volume competitors.’
Speaking in Barcelona at the company’s second media launch of its next-generation model, Willis claimed that early indications from UK contract hire and leasing companies suggested residual values were set to be as much as 10 points higher than the previous Passat. Car rental uk.
He said: ‘This is good news. It puts us within spitting distance of Audi and BMW and I’m very pleased with the way things are shaping up.
‘To be honest, I was worried about the prospects for this car because the previous version had such a huge impact on the image of the brand. That resulted in very high demand and a dramatic improvement in our residuals.
‘I wondered if it would be possible to follow that level of achievement, but it looks like Volkswagen has moved the game on again. It’s most satisfying.’
Willis claims the new car’s pricing structure and strong residuals are paramount to his plans for the development of Volkswagen UK over the longer term. Car rental uk.
He said: ‘Believe me, we understand the supply and demand equilibrium.
‘While we don’t have ambitions for any large growth in volume, we do aim to retain our leadership of the saloon sub-sector in the UK. That is not the case in the rest of Europe, but the factory shares our goals. And while we are both working to increase our share of the UK market, we are dedicated to raising the quality of our business.
‘You only have to look at what goes on with competitor brands to see that anyone can sell cars at a discount, but achieving the right balance between volume and quality of share is more difficult. Our strategy is to undersell our share in the rental and other sub-sectors of the fleet market that can adversely affect residuals.
‘This is a declining sector, of course, and some of our rivals are pricing their products at less than the Golf, which is in the segment below the Passat. Clearly, that is a ridiculous situation – they’re trying to buy business and it’s small wonder you read about them being unprofitable.
‘We are working hard to position ourselves away from all that. The brands that achieve D-sector growth in future will be those that have value rather than forced discounts. The new Passat will be a strong user-chooser car – it has a beautifully sculptured appearance that excites me. I think it looks like a real winner.’ Car rental uk.
As already reported by Fleet NewsNet, standard safety equipment in the Passat will include electronic stability control, driver, front passenger, front side and curtain airbags, fast-response rear LED lights, active front headrests and Isofix child seat mountings. Keyless entry and an electronic parking brake are also standard-fit and a Bluetooth telephone unit, a 600 watt hi-fi system and dual-zone Climatronic air conditioning are among optional items, along with a 230-volt mains outlet in the rear compartment to power laptop or computer games equipment.
Behind the wheel
WITH longer, wider and taller bodywork to haul around, it comes as no surprise to find that the lowest-rung Passat engine needs to be worked fairly hard to keep up a brisk pace on fast cross-country routes.
How it will cope with lugging four or five occupants – and with its bigger boot crammed full of luggage – remains to be seen, but to be fair, the new 1.6-litre FSI motor performed with gusto on our short test drive near Barcelona.
Now mounted transversely to free up additional body space, the 113bhp unit becomes vociferous at high revs but does settle to a more relaxed gait in sixth gear on the open road.
Irrespective of speed or territory, progress in the 2.0-litre FSI version proves to be noticeably easier, however. In 147bhp guise, the Passat comes closer to achieving Volkswagen’s ambition of cutting the cost of motoring with the ambience to go with an upmarket brand.
When linked to the group’s own torque converter automatic transmission in particular, the stronger petrol motor has the laid-back demeanour of premium transport and combines lively output with a level of refinement that should concern Audi, let alone Ford and Vauxhall.
Curiously, the interior treatment of the entry-level version may well have stronger appeal to British tastes. Designed to be sporty as well as practical, its brushed aluminium fascia strip is neater and more visually appealing than some of the walnut-grain wood inserts used in the German-specification Highline versions we tried.
In entry-level trim, the German company’s D-sector contender will be pitched to cost just 1.3% more than models from volume manufacturers, Fleet NewsNet can reveal.
Finishing touches are now being put on the marketing strategy that will allow British customers to pay substantially less for the lead-in 1.6-litre petrol S version than the £15,600 being asked for the car in domestic market showrooms. Car rental uk.
And executives at Volkswagen UK are aiming to step up the pressure on Ford, Vauxhall and Peugeot by pricing the version of the Passat they expect to be most popular – the 2.0-litre TDI SE 140 – only 1% higher than competitor models when specification levels are taken into account.
Volkswagen UK director Paul Willis said: ‘We are still working on the details, but I can tell you that our SE cars will include six-speed transmission, electronic handbrake, cruise control and 16-inch alloy wheels. This is specification packaging that puts us way ahead of our volume competitors.’
Speaking in Barcelona at the company’s second media launch of its next-generation model, Willis claimed that early indications from UK contract hire and leasing companies suggested residual values were set to be as much as 10 points higher than the previous Passat. Car rental uk.
He said: ‘This is good news. It puts us within spitting distance of Audi and BMW and I’m very pleased with the way things are shaping up.
‘To be honest, I was worried about the prospects for this car because the previous version had such a huge impact on the image of the brand. That resulted in very high demand and a dramatic improvement in our residuals.
‘I wondered if it would be possible to follow that level of achievement, but it looks like Volkswagen has moved the game on again. It’s most satisfying.’
Willis claims the new car’s pricing structure and strong residuals are paramount to his plans for the development of Volkswagen UK over the longer term. Car rental uk.
He said: ‘Believe me, we understand the supply and demand equilibrium.
‘While we don’t have ambitions for any large growth in volume, we do aim to retain our leadership of the saloon sub-sector in the UK. That is not the case in the rest of Europe, but the factory shares our goals. And while we are both working to increase our share of the UK market, we are dedicated to raising the quality of our business.
‘You only have to look at what goes on with competitor brands to see that anyone can sell cars at a discount, but achieving the right balance between volume and quality of share is more difficult. Our strategy is to undersell our share in the rental and other sub-sectors of the fleet market that can adversely affect residuals.
‘This is a declining sector, of course, and some of our rivals are pricing their products at less than the Golf, which is in the segment below the Passat. Clearly, that is a ridiculous situation – they’re trying to buy business and it’s small wonder you read about them being unprofitable.
‘We are working hard to position ourselves away from all that. The brands that achieve D-sector growth in future will be those that have value rather than forced discounts. The new Passat will be a strong user-chooser car – it has a beautifully sculptured appearance that excites me. I think it looks like a real winner.’ Car rental uk.
As already reported by Fleet NewsNet, standard safety equipment in the Passat will include electronic stability control, driver, front passenger, front side and curtain airbags, fast-response rear LED lights, active front headrests and Isofix child seat mountings. Keyless entry and an electronic parking brake are also standard-fit and a Bluetooth telephone unit, a 600 watt hi-fi system and dual-zone Climatronic air conditioning are among optional items, along with a 230-volt mains outlet in the rear compartment to power laptop or computer games equipment.
Behind the wheel
WITH longer, wider and taller bodywork to haul around, it comes as no surprise to find that the lowest-rung Passat engine needs to be worked fairly hard to keep up a brisk pace on fast cross-country routes.
How it will cope with lugging four or five occupants – and with its bigger boot crammed full of luggage – remains to be seen, but to be fair, the new 1.6-litre FSI motor performed with gusto on our short test drive near Barcelona.
Now mounted transversely to free up additional body space, the 113bhp unit becomes vociferous at high revs but does settle to a more relaxed gait in sixth gear on the open road.
Irrespective of speed or territory, progress in the 2.0-litre FSI version proves to be noticeably easier, however. In 147bhp guise, the Passat comes closer to achieving Volkswagen’s ambition of cutting the cost of motoring with the ambience to go with an upmarket brand.
When linked to the group’s own torque converter automatic transmission in particular, the stronger petrol motor has the laid-back demeanour of premium transport and combines lively output with a level of refinement that should concern Audi, let alone Ford and Vauxhall.
Curiously, the interior treatment of the entry-level version may well have stronger appeal to British tastes. Designed to be sporty as well as practical, its brushed aluminium fascia strip is neater and more visually appealing than some of the walnut-grain wood inserts used in the German-specification Highline versions we tried.
# posted by Liz Laurie @ 9:13 AM 
